Phil Thompson, a former Liverpool footballer and Sky Sports pundit, has lost his IR35 appeal at the Upper Tier Tribunal, accruing a tax bill of nearly £300,000 after HMRC classified him as a 'disguised employee' during his time with Sky Sports from 2014 to 2018. The initial ruling in the First Tier Tribunal concluded that Sky Sports exerted significant control over Thompson's engagement. His appeal on four grounds was rejected, emphasizing HMRC's intensified scrutiny on freelancers in media roles and the importance of contract reviews to avoid significant tax liabilities.
Thompson's case serves as a stark warning for freelancers and businesses alike. With HMRC ramping up its focus on IR35 enforcement, thorough contract reviews and clear working practices are essential to mitigating tax risks.
Seb Maley, CEO of Qdos, described the case as a familiar scenario, warning that "HMRC pursues a high-profile freelance presenter who has fallen into the trap of working in a way that reflects disguised employment. The result is a staggering tax bill."
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